Insight & Resources

During a moment in recruiting history when most executive search professionals are suffering, our practice in for-profit education has been thriving. Part of the reason is what I call ” board fatigue”–PE or VC partners and other board members who’ve grown impatient with the CEO of a portfolio company. In some cases their dissatisfaction is known to the CEO; in others, for various reasons (such as accreditation issues in the postsecondary education market), the board has chosen to conceal its desire for change, even from the sitting CEO.

The call to me typically begins, “We’re thinking of replacing a CEO. But we need this to be done in confidence. Can you do it and still be effective?” The answer, of course, is, “Yes, but first give me one good reason why you don’t sit down with your CEO and discuss why the change is needed.”

Answers vary, but the most common is, “We don’t want to lose momentum or cause uncertainly within the company,” i.e., “We’re afraid that news the CEO is being replaced might affect morale and revenues.”

This may be true, of course, but before embarking on a sub rosa search for a replacement, consider these issues–

•    Are you sure the situation cannot be resolved without the CEO being deposed? Have you tried everything to turn him/her around? Is the problem focused on a few concerns–work ethic, slow decision making, failure to address a single overriding market challenge, etc.–or is it overall leadership?
•    Are there intermediate steps you might take to at least put the CEO on notice? “Probation”? Come to Jesus? Sabbatical? Revisiting compensation?
•    Could the problem be resolved by bringing in the right support, e.g., a COO or new CFO?
•   Could the CEO be moved into a different to position, allowing you to bring someone in above him/her? Would your CEO accept demotion to President and COO, for example? Could the CEO be moved into a Chairman role?
•    How can you present the decision to replace in such a way that the CEO sees the wisdom in your decision? Obviously the CEO has a financial stake in the company’s success. Might it be that he or she will be relieved? See this as a win-win?
•    How valuable could the CEO be in the process to find the replacement? Do you want him/her to play an active role, and would s/he be effective in this role, if properly motivated?
•    What are the risks if word gets back that a search is being conducted for a new CEO?
•    What are the risks that a disgruntled CEO could sabotage the search process? Agree to participate in interviewing, then blow candidates out of the water?
•    What effect will conducting the search in confidence have on the overall quantity and quality of candidates? On your ability to secure the best among these?
•    How and when do you expect to inform the CEO what’s going on?
•    What role will the departed CEO have in the transition process once the new CEO is named?

If your decision remains to conduct the search sub rosa, your first line of attack should be internal. Do you or others on the board already know the right replacement? Could that replacement be the COO or someone else within the company? Someone from another portfolio company? Someone you interviewed for another position, or in a previous CEO search? Someone from a major competitor whom you have reason to believe could be lured away? The fewer the people who know of the replacement process, the better.

If you engage a search firm, make sure you are comfortable that they are comfortable–and have experience with this type of search. Have them share their stories of similar assignments: the scenarios, the specific challenges, the process, the outcomes. Unless they are truly confident they can succeed with “one hand tied behind their backs,” they won’t. Also make sure they use a Confidentiality Agreement with all prospective candidates, and that, in addition, they enforce confidentiality with candidates throughout the process through constant reminders. Some candidates love to brag–or just back-door reference you and the company.

And keep asking yourself, is now the time to sit down with your CEO?

So how hard is it for an executive search firm to conduct a quiet search? Not so, if they’ve done it before. Being presented an opportunity in the abstract–without knowing the “who”–can be enticing to a candidate. The idea of replacing a sitting CEO can also be enticing. The key to how enticing can depend on how much latitude the recruiter has in profiling your company. If it’s “an industry leader in LED technology,” then the appeal may be high…but the exposure equally high. If it’s “a profitable, private equity-backed company with EBITDAs > 20% and a market cap of $1B,” then the appeal may be equally high but without the downside of exposure. A good recruiter knows how to set the hook without naming the fly.

Where it can and does affect the recruiter’s performance is in sourcing others for leads. You no doubt know from your own experience that recruiters are on a constant hunt for referrals. Now think about the reasons you do and don’t respond. If I called or emailed you that I was looking for Eric Schmidt’s replacement at Google, you might just take time to reply. If instead my message was, “Doing this search. Can’t tell you much other than it’s a CEO position in the K-12 curricular market,” you might well not. More than half of the executive placements we make come from such referrals. Starve the lead process, and you starve the search.

Willingness to relocate the candidate can also be a factor. The wider the geography of the search–the more candidates from outside your region–the less likely is it that word will circulate back to your CEO or to others in the company, and the more latitude your recruiter has.

Give serious thought to how and where you intend to interview prospects, and to how many you expect to interview. It may be relatively easy to bring candidates into your office, and to the offices of others on the search committee. At some point, however, they may want to “smell the paint”–meet others in the company, see the offices, gauge the culture (and the commute). This may be the point of no return. Is now the time to reveal?

In the best of all possible worlds, your CEO will be your biggest and most powerful advocate for change. He or she may be the critical factor in a candidate’s decision to accept an offer. The deposed but relatively content CEO can also be instrumental in the transition process. Be thinking about what you can do to secure the CEO’s cooperation. Extra equity? The right spin on how the replacement is announced? Promise to plug into the right future portfolio company?

Confidentiality can be a problem. But it does not have to be–if you think through the alternatives, work hard to get the CEO’s buy-in, and work with a search firm that has the right expertise.

Ralph Protsik
BSG Team Ventures
224 Clarendon Street, Suite 41
Boston, MA 02116
617-266-4633
ralph@bsgtv.com

Why is it that during a recession, it is so difficult to attract and hire qualified orthopaedic engineers? One would think that with unemployment at a quarter-century high, qualified engineers would be beating down the doors of the OEMs. Then why is it that all we seem to see are unqualified people cluttering up email and telephone inboxes, wasting valuable time and energy? The fact is, even though there have been moderate layoffs within some “Big Ortho” companies, the demand for orthopaedic engineers has outpaced supply and shows no sign of relief. Our economic woes have brought hoards of unemployed or fearful people who believe that medical devices are the last “safe haven” for employment. We’ve seen this phenomenon occur with each recession. However, an increase in available candidates does not translate into more talented hires. Often times it creates more problems than it solves.

The challenge of recruiting engineers is as difficult as it has ever been. Demographics plays a role in driving the demand for more innovative orthopaedic products, however, the counter-pressures of pricing and the looming fears of a healthcare takeover by the U.S. government has industry fighting to mitigate their risk. This means you must do more with less, translating into more responsibilities on your plate and less time to do them. Compound that challenge with a seemingly endless onslaught of new start-ups within the industry competing with the once-invincible OEMs. These small companies can still offer more excitement, autonomy and potential rewards if they can manage to either get acquired or go public. While the industry is still growing, due to all this new competition and pricing pressure, companies are stretching resources further than ever before. The growth of the supplier market has also proven that while it may benefit the OEMs, suppliers essentially compete for the same engineering talent with the very customers that they serve.

None of these challenges is going away. Your only option is to compete for talent by using creative means and strategies to start sourcing, attracting and screening the right candidates. The companies and hiring managers who will succeed are those who will adapt to the market and devise new ways of attracting quality people to their companies and building their benches. There are several ways this can be done, but what is clear is that the more of these strategies that you employ, the greater likelihood of your success.

If there was one means of recruiting that trumps all the rest, it’s networking. Everyone must be concerned about exploiting his network to broaden his competitive reach. This can be achieved several ways. First, actively network with strong college engineering programs and recruit on all local campuses. This can be done by attending job fairs and advertising your company in engineering newsletters and college job boards. Secondly, promote your company’s Employee Referral Program. Most companies have them, but few promote them and truly benefit from them. You must convey to your team that the company is “always looking for talented and experienced engineers.” Create a culture of seeking the best people to join ranks. One of the most effective ways to incentivize your current team is with cold, hard cash. Alternatively, you can offer extended vacation time or other benefits. If you decide to stick with cash, pay half of the sum upon the new hire’s start date and the balance upon the new hire’s one year anniversary to incentivize your team to protect their company from “job hoppers” and under-performers. A culture of referrals and team-building must be as prominent as one of innovation and engineering excellence for you to effectively leverage your employees’ connections.

Another effective method of networking is tapping into your own network of former colleagues. Since we know that “birds of a feather flock together,” your former colleagues are likely to know your needs and the kinds of people who would fit your team. If they are not an ideal candidate for your position, they may know someone who is.

Additionally, these people should give an honest assessment of the person’s talent in an effort to keep the trust in your relationship. This is especially true if you are the one to initiate the conversation, since their loyalty is generally to you first and the potential candidate second. The best place to do this is at one of the many shows and expositions such as OMTEC or AAOS. If you are not seizing these opportunities to broaden your reach, work your network and meet new people in the industry, you are missing out. The best hiring managers are using these shows not only to connect with old friends, but to step outside of their comfort zones and network with friends of colleagues, and to introduce themselves and their company to as many engineers as possible.

The next strategy using the internet and job boards in search for candidates. By making good use of the internet, you should attempt to cut out the “middle man,” especially in the early stages of your search. Most contingency recruiters, i.e. middle men, rely heavily upon job boards to find active job seekers. While these recruiters are happy to charge a full fee for sourcing your next hire from one of these websites, it seems pointless to me to pay a fee for candidates who are available online. That is unless, of course, you have no time and bunches of money. It is undeniable that recruiters typically have a better yield from the internet. There are two main reasons for this: they have the time and they have the knowhow. They tend to write a more compelling job posting that entices the right people to apply online.

Engineering managers tend to focus too much on screening people out when they should be drawing them in. The highly technical side of your brain wants to only post the position’s “requirements” and “must haves” on the web, hoping to attract someone with the right talent and experience. The reality is that anyone with the type of experience you are seeking is sifting through dozens of similar jobs, and it is now that you must “set the hook.”

What will improve the likelihood of convincing them to respond to your posting? You must make the job posting sizzle! It must be compelling to the reader. It should read more about what they will become, the things that they will be able to do and the impact that they will be able to have upon the company, industry and patients. This is the type of posting that gets people to apply, not a dry list of duties and responsibilities. Whether you are talking to a prospective candidate or posting an online job, always remember to sell first, and then screen. Especially in the interview process, it is typical for managers to “cut to the quick” in the interest of time and look for the candidate’s Achilles heel. This may be a huge turn-off to the candidate, so try to be more creative in getting the answers you seek. Build rapport first and sell your company. After they have begun to show interest, then screen them to the specifications of your position.

Another common mistake in posting a job is to only post when you have an immediate need to hire. In this market, you must keep your “line in the water” and maintain a constant presence on the web. If you are concerned about any consequences of leaving a job posting up, most of the sites allow you to post jobs “confidentially.” Recruiters also have knack for finding the places where people “park” their resumes. These are generally the same job posting sites, and they have robust databases of “passive candidates” who may be currently seeking new opportunities. These sites are far less expensive than paying a recruiter, and everyone who hires in orthopaedics should maintain a formidable web presence aside from their own company’s website. By investing some time and effort online, you will save money on fees paid to recruiters.

Of course, finding a candidate is only the beginning of the process.  Keep in mind that if these candidates are online, there is a very good chance that other companies are pursuing them too, so you’d better have multiple candidates to process simultaneously. Don’t put all your eggs in one basket.

To remain competitive in the war for talent, these techniques are essential to any engineering manager’s job. However, if time is critical and you must get results within a short timeframe, it is appropriate to partner with a search professional.

Vetting the recruiting firm is every bit as important as the engineer that you hire. Be careful not to hire a recruiter who will merely repeat what you’ve already done on the internet. Find a recruiting partner who can guarantee the results of her search work. Don’t fall for a good sales pitch. I’ve found that almost any recruiter who is in business can sell herself and close a search deal. You are not looking for a good sales pitch, but a professional who can deliver experienced talent on time. In order to accomplish this, you need someone who has a proven track record and truly knows your specific needs. It is not uncommon for a recruiter to make audacious claims of expertise with little (if anything) to support those claims. I’ve found it entertaining that while claiming to be expert in the field of orthopaedics, upon further inspection on the web, they usually also “specialize” in other fields that are completely unrelated to orthopaedics. Just be judicious in conducting your “due diligence,” or else you may find yourself stuck with regrettable consequences.

You will do well to find a respected orthopaedic industry specialist you can trust, and with whom you can build a long term relationship. In doing so, you will eliminate the learning curve for assessing soft skills and chemistry fit.

It is critical that you find a recruiter who cares more about your success than making a placement and earning a fee. I cannot over-emphasize this point. Your success is in the hands of someone else. Make sure you’ve done extensive reference checks and feel completely comfortable entrusting so critical a responsibility to your search partner. You need someone you can count on to deliver every time.

The difficulty of finding experienced orthopaedic engineering talent is here to stay. To be effective in recruiting talent, your company must be committed to this effort as an ongoing endeavor and not simply an event. Make every effort to cut out the middle man before the need becomes critical. You can save thousands of dollars by using the same niche job boards and medical device candidate databases as the contingency recruiters do, so why pay more? When all else fails, do your homework and find a recruiting partner who you know will deliver in the clutch. The time spent in advance will help you sleep well at night knowing that they are on the job and have your best interests at heart.

Drue De Angelis has more than 22 years in the orthopaedic and spine industries. For the past ten years, he has built The De Angelis Group into the premier search firm exclusive to the musculoskeletal industry. For more information, please visit www.thedeangelisgroup.com.

The De Angelis Group
8145 North 86th Place
Scottsdale, AZ 85258
USA
877-416-0377 (toll free)
www.thedeangelisgroup.com

While industries such as finance, real estate, telecommunications and IT have suffered tremendous losses during the recent softening of our economy, the orthopaedic industry has shown strong, consistent growth and has been relatively immune to economic “ups and downs.” By all appearances, future growth for the demand of orthopaedic products looks favorable. However, according to the U.S. Bureau of Labor Statistics (BLS), by 2010 there will be 167,754,000 jobs available in the U.S., but only 157,721,000 skilled workers available to fill them.

If the BLS is right, this shortfall of 10 million workers (the largest since World War II) is expected to precipitate a crisis that will affect every industry, suggesting that an increase in demand for your products will not, by itself, be enough of a driver to ensure future corporate success.

The economic boom of the 1990s showed us that a shortage of skilled talent causes salaries to rise, which in turn leads to a climb in the costs of goods. As competitive pressures serve to drive prices downward, the increasing cost of labor will dictate that companies do more with less (human capital). As smaller companies fight to remain competitive and profitable, they are often doomed to acquisition, merger or going out of business.

Today’s corporate challenge is not just about competing for business; it is also about competing for TALENT that can drive your business INTO the future as well as IN the future.

How do companies compete for talent within a shrinking pool? Progressive-thinking companies are hiring consultants to help them develop processes that counter employee perceptions of corporate apathy. Many companies are lulled into a false sense of security (regarding employee satisfaction) because, in a soft labor market, many employees are content merely to have a job. Companies attentive to this reality can avert impending trouble by keeping their employees challenged and fulfilled.

Companies apply countless resources toward development of Customer Value Propositions; similar effort should be applied to attract and retain your employees. NOW is the time to develop your company’s Employee Value Proposition. “An Employee Value Proposition is the sum of everything the people in your company experience and receive while they are a part of the organization; from the intrinsic satisfaction of the work, to the environment, leadership, colleagues, compensation and much more. It’s about how well the company fulfills people’s needs, expectations and dreams.”*

Assess whether your company has what it takes to identify, recruit and retain the most talented individuals by asking: Why would a highly talented person choose to work here? In your answer, focus upon three key areas: Relationships, Infrastructure and Compensation.

Relationships represent the adhesive bonds that “connect” employees to an organization: corporate culture (do you really have a handle on yours?); management style (do you really understand the strengths and weaknesses of yours?); institutionalized values (do all or most levels within your hierarchy share similar perceptions?); policies and procedures (do they send the messages you want to convey?).

Most employees understand and accept that “job security” relies primarily upon their personal talents, and not upon their having earned a key berth within a “corporate nest.” However, as employees read and hear about corporate staffing cutbacks (seemingly on a daily basis, across all industries, within companies large and small and affecting individuals with skills and expertise that were apparently “in-demand” until the day of cutback), it is no surprise that employees sense a lack of loyalty on the part of employers. In turn, many talented workers feel little loyalty to
their employers — a dynamic that leads to a rise in the number of job changes that the average person will likely make during his or her career.

With rare exception, employees no longer retire from the same company where their career began. Why? Generally speaking, employees believe that most employers do not “care about people” in the way they perhaps did twenty or more years ago. They sense that shareholder “bottom line” is more important to management than is the idea of “taking care” of those employees who dedicated their lives to generating that bottom line. As employees see profitability become the sole corporate keyword, they sense (despite corporate protestations to the contrary) that relationships are basically a non-issue.

In terms of hiring practices, many companies are beginning to view a candidate’s work history differently than they might have only a few years ago. “Within a few short years, the old taboos against job-hopping had evaporated and it has become a badge of honor to have multiple companies on one’s resume.”* It was once perceived a negative to have multiple jobs on a resume; today there is a quite different phenomenon.

More than ever, it is essential that employers take a different attitude toward their employees. Managers must begin developing their employees rather than merely monitoring their productivity and measuring their performance. The tired attitude that “managers are served by their subordinates” must be replaced with one of “service to their internal customers.” As the cost of replacing talented people becomes higher than ever, only those managers who can transition their thinking will be able to help retain the absolute best employees.

Infrastructure describes the processes and procedures that your company uses to manufacture or sell its goods. To compete for talent, companies must utilize state of the art equipment and techniques to keep their people challenged and fulfilled.

Human nature being what it is, dedicated employees will become dissatisfied if they believe that other companies offer products that are superior to theirs. This example highlights one reason why companies race to attain the “latest and greatest” ISO certification. The issue is not only about meeting regulatory standards or about providing the best quality for the customer — it is also about creating an environment where employees are motivated and proud to be associated with forward-thinking, professionally driven organizations.

Example: Twenty years ago, Synthes dominated the bone screw market. It was difficult for other companies to compete in this arena, as Synthes had achieved an unmatched reputation for precision machining. Other companies’ sales reps felt that they could not compete because theirs was a lesser quality product. Zimmer addressed this “infrastructural” issue by purchasing a particular brand of lathe that dramatically enhanced the quality of their bone screws. This seemingly small action did more to increase Zimmer’s sales of trauma products than any marketing strategy or
commission-raising could have accomplished. The quality improvements became a key component in attracting, motivating and retaining top performers.

Compensation includes income, benefits and equity or profit sharing. Although many people believe that money is the most powerful motivator, according to Management Recruiters International, compensation is not the leading reason that people make a job change (money is third on the list). Instead, the relationship that employees have with their company is consistently ranked as the top reason given to “stay or leave.”

Most people leave their job for an opportunity to do something new. “Talented people want exciting challenges and great development opportunities. They want to be in a great company with great leaders. They want an open, trusting and performance oriented culture.”*

However, income and benefits are important motivators, and every company needs to be competitive merely to stay in the game to be able to hire the right people. Equity and profit-sharing are “velvet handcuffs” that companies can offer to
demonstrate interest in rewarding their employees at a level commensurate with their contribution.

In a competitive compensation program, rewards are proportional to the risks. In start-ups or relatively new companies with unproven track records, a significant compensation plan is critical to attract the right people. The risk is great, but the upside potential must be greater if they want to attract and retain the best. Larger, more established companies can (and tend to) offer smaller compensation plans with stronger benefit packages, because they have perceived stability and thus can rely upon name or brand recognition to attract candidates who might be more risk averse than others.

A company that executes well in these areas of an Employee Value Proposition is poised to attract and retain its best people. The degree to which any of these areas is ignored is proportional to the potential vulnerability of losing the talent a company needs to succeed and secure its growth in the years ahead. Begin now to develop a winning Employee Value Proposition and insulate your company from the likely effects of the coming crisis.

*The War for Talent, Harvard Business School Press, 2001.

Editor: Drue De Angelis is President and Managing Partner of The De Angelis Group, a search and consulting firm that provides search and recruitment services exclusively to the medical device, biotech and pharmaceutical industries. Prior to establishing The De Angelis Group, Mr. De Angelis served at Zimmer and Stryker Howmedica Osteonics for 13 years. He has consulted with hundreds of small- to medium-sized companies within the medical device industry. His team places special emphasis upon building relationships with industry leaders and solving complex organizational problems.

The De Angelis Group
7950 East Redfield Road, Suite 280
Scottsdale, AZ 85260 USA
877-416-0377 (phone)
877-588-0439 (fax)
www.thedeangelisgroup.com
drue@thedeangelisgroup.com

Mundelein, IL (December 2, 2009).  Ted Konnerth, PhD, President/CEO of Egret Consulting Group, will be speaking at the Strategies in Light conference February 11, 2010 in Santa Clara, California.  Ted will be leading a discussion on the challenges of selling new lighting technologies into an established buying channel. 

Strategies in Light is the longest-running and largest business conference and exhibition of high-brightness LEDs and solid state lighting.  This conference is heavily attended by Lighting Designers, Specifiers, Architects, Luminaire Manufacturers and Investors.  The conference is produced by Strategies Unlimited and the Penwell Corporation and will run February 10th through the 12th at the Santa Clara Convention Center.

Egret Consulting Group is a boutique search firm that specializes solely in the electrical industry. Egret recruits for electrical manufacturers, electrical wholesale distributors, lighting design firms and industrial wholesale distributors. As the largest recruiting firm dedicated exclusively to the electrical industry, Egret regularly works with firms of all sizes.

Ted Konnerth PhD, is president/CEO of Egret Consulting Group located in Mundelein, Ill.   Prior to founding Egret Consulting in 1999, Konnerth was with Cooper Lighting for 16 years and served as global vice president of sales for 4.5 years for the $1 billion lighting division before starting his search firm.

Contact:
Christina Parhas
Egret Consulting Group
cp@egretconsulting.com
www.egretconsulting.com

The worst of the global economic crisis is over and developing countries like Malaysia can expect to register 6% gross domestic product (GDP) growth next year, according to UBS Investment Bank. In South-East Asia, Malaysia was expected to lead the pack in GDP ahead of Singapore, Thailand and Indonesia, which were all expected to record lower GDP growth (5% or below). On the Asian front, the economic fundamentals were much stronger, lead by China and India.

A V-shaped recovery is expected for these countries, including Malaysia, which had been affected by lower export demand, especially from the developed world, during the peak of the global economic crisis. The US-led financial crisis has hit countries that are dependent on the US economy hard. Malaysia’s manufacturing sector has been one of the hard-hit victims.

Just how important is China to Malaysia? China’s share of Malaysia’s exports climbed to 8.8% in 2007 and 9.5% in 2008. In the first nine months of 2009, China became Malaysia’s biggest export market, overtaking the United States. Last year, the two-way trade volume topped US$53bil and Malaysia has become China’s largest trade partner among Asean countries.

China is now the largest market for many of Malaysia’s major exports, especially commodity products. This is important, as there were instances in the past when the exports of Malaysia’s electrical and electronic products have been reduced. Commodity exports have historically played an important role in avoiding adverse impacts on the economy.

Apart from trade, China has become an increasingly important market for Malaysia’s tourism industry. In the 1990s, Japan used to be Malaysia’s largest source of tourist arrivals outside of the Asean region. Now, the role has been taken over by China.

Malaysia is also an education hub in the region. In the early 2000s, a large number of Chinese students came to Malaysia to pursue their higher education. In fact in 2002, close to 40% of all foreign students in Malaysia were from China. Today China is still the second biggest contributor of foreign students in Malaysia.

Industrial and Commercial Bank of China (ICBC), the worlds most profitable bank, has just been granted a consumer and commercial banking licence to operate in Malaysia. Their first outlet is targeted to open in Q1 2010.

US fund managers, including those who represent huge pension funds worth trillions of dollars in the United States, have expressed interest in investing in Malaysia but want the Government to ensure continuity of its liberalisation policy. The US financial community welcomed the re-listing of Maxis (largest local mobile telco), saying it gave them the opportunity to invest in a major company. They also indicated interest in investing in companies with big market funds, good potential and governance.

Two American companies are expected to make substantial investments in the local beverage and gas sectors soon. Exxon Mobil Corporation expressed its intention to venture into high CO2 content gas extraction while beverage giant Coca-Cola wants to build a new modern plant in Malaysia. For Exxon, this will require additional investment as it is a new form of technology. They will need to build new turbines as they plan to use them to generate electricity. As for Coca-Cola, a new bottling plant will be built using advanced technology. The value of the investments will be announced later as the Government is still working out the details on tax incentives to the companies.

A world class US premium factory outlet centre will be open in Malaysia by 2011. Chelsea Premium Outlets is owned by Chelsea Property Group, which is the world’s largest owner, developer and operator of upscale outlet centres in the United States, Japan and South Korea. Its centre in New York, Woodbury Commons, lures millions of shoppers to its discounted items of designer brands like Coach, Gucci, Zegna, and Burberry. Items which are a season old are between 25% and 60% cheaper.

ABOUT FOSTER PARTNERS

Foster Partners is a global retained executive search firm focused on senior level professionals for US, European and Chinese corporations. China headquarters are located in Shanghai, with operating offices in many of the other major cities in China mainland and Hong Kong. Additional Asia operating offices include Kuala Lumpur. U.S. headquarters is located in New York, New York.

For more information regarding Foster Partners, visit our website http://www.fosterpartners.biz/ or contact:

Trevor McCormick – trevor@fosterpartners.biz
John Chen – johnchen@fosterpartners.biz

What Leadership Talents are needed to Produce Top Results?

Overview

When a company is looking for a new CEO or senior leader, they often start with a plan to hire an individual who has previously done what their organization is looking to achieve today. This is generally an excellent strategy since past behavior and achievement are the best measures of future success within a similar sector. The key is to find leaders that not only have the right talent, personal traits and abilities but also have the “fit” and chemistry needed to work effectively with the owners or founders of the company. A shared vision and the ability to collaborate on important business issues are essential to the empowerment of the CEO or senior executive to drive the business forward.

The key to success is to locate people who can go well beyond the basics of the job – individuals who demonstrate true leadership. Not just any kind of leadership will do. Leadership that produces results is what is needed. Given the unique demands of the situation, what kinds of leaders using what methods will produce top results?

The Effective Leader

Starting with the person, leadership depends on people who are in control and under control. Good leaders are smart and demonstrate a high level of emotional intelligence. They are self aware, manage themselves well, are socially aware and have good social skills.

•They have the ability to read and understand emotions and to recognize their impact on work performance and relationships.

•They demonstrate self-control, trustworthiness, conscientiousness, adaptability, a need to achieve – to take the initiative.

•They are empathetic, organizationally astute and have a strong service orientation.

•They demonstrate visionary leadership, influence and team well with others while providing feedback and guidance, good conflict management and the development of a web of relationships in the organization and with important outside constituencies.

The effective leader usually has a leadership style which is especially effective in certain situations. For example, coercive managers are good in crises and turnarounds while managers who provide clear direction and feedback are helpful in organizations looking for better performance in their mainline businesses. Friendly managers are useful in conflict situations and democratic managers are helpful in getting more and better ideas for improvement from their people. Pacesetters are usually the most expert in the company’s business and lead via strong personal leadership and superior knowledge. Finally, managers who are good coaches excel in the development of people and in the building a good bench for the future.

A Moving Target

Every effort should be made to match talent with need but the real world is complex and constantly changing – even in a single organization.

Truly effective leaders have the capacity to use more than one style to get the job done. When the leader lacks the specific style needed to succeed they need to call on the right style from one of their people or even an outside consultant.

In a start up operation there is a need to wear a number of hats at one time, to operate with scarce resources and to be very action-oriented. Strong, directive leadership is usually the norm. In second stage companies capitalizing on early success by driving more volume or reaching out to new markets the need turns to knowing about business basics and how to run specific departments where expertise is needed in disciplines like accounting, personnel, production, marketing and sales, R&D and the like. The general manager’s job changes from a totally hands-on do it now mode to the need to plan, structure, and set goals while relying on knowledgeable managers to build departments, to reduce errors and to build the carrying capacity of the organization. In third stage companies looking to further growth and success more emphasis is placed on long range planning, better ways of dealing with complexity and the need for better communication and feedback systems.

A Sobering Reality

The illusion of certainty and steady progress causes some in business to assume that what works for now will work in the future. Obviously, that is not the case nor is it the case in other facets of life like our families, our hobbies and our interests. It can be difficult for those inside a company to see subtle but steady change and the need to upgrade the organization, to plan for the future. Which of your people have really developed recently and need more challenge? Which people have reached a plateau in the face of increasing demands for innovation and leadership in new methods and products? And, which people are retired on the job or totally failing?

A review by an objective outsider with broad knowledge of business, the needs of companies of differing sizes in a range of industries can be a helpful starting point in plotting the kinds of leaders who will take the company the next mile. Attached is a scorecard you can use to assess the needs of your organization. Call us if you want to compare your notes with our insights and we can work with you to provide the kinds of leaders you most need while making sure that your organization is not only being effective today but developing the leadership talents and styles needed to provide enhanced results in the future.

Dan Dieck, CEO
Dieck Executive Search
February 2, 2009
608-238-1000
www.DieckExecutiveSearch.com
Dan@DieckExecutiveSearch.com